nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2014‒07‒05
eight papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Current Problems in the Development of the Banking System of the Russian Federation By Alexey Vedev; Sergey Drobyshevsky; Mikhail Khromov; Sergey Sinelnikov-Murylev
  2. All Quiet on the Eastern Front? Disruption Scenarios of Russian Natural Gas Supply to Europe By Philipp M. Richter; Franziska Holz
  3. The Quasi-Markets Of Social Services: The Competitiveness Of Russian Nonprofit Organizations Against For-Profit Organizations And Public Providers By Svetlana Suslova
  4. Similar Challenges - Different Responses: Housing Policy in Germany and Russia between the Two World Wars By Konstantin A. Kholodilin; Mark G. Meerovich
  5. Exchange Rate Pass-through in Russia By Yuri Ponomarev; Pavel Trunin; Alexei Uluykaev
  6. Essays on India in a Global Context     By Singh, Nirvikar
  7. Линейки ссудо-сберегательных тарифных планов: обобщение идеи стройсберкасс. By Polterovich, Victor; Starkov, Oleg; Ilinskiy, Dmitry
  8. Breaking the Unbreakable Union: Nationalism, Trade Disintegration and the Soviet Economic Collapse By Marvin Suesse

  1. By: Alexey Vedev (Gaidar Institute for Economic Policy); Sergey Drobyshevsky (Gaidar Institute for Economic Policy); Mikhail Khromov (Gaidar Institute for Economic Policy); Sergey Sinelnikov-Murylev (Russian Foreign Trade Academy)
    Abstract: In 2013 the situation in the banking sector of the RF underwent major changes. On the one hand, the volume indicators of the banking sector continued to grow, although more slowly than before. However, this growth was mainly due to aggressive behaviour of the banks in the consumer lending market, despite actions by the Bank of Russia aimed at reducing the attractiveness to the banks of such loans. On the other hand, there was an increased imbalance in the banking sector related to the non-uniform distribution of liquid funds, the outflow of customers from small and medium-sized banks to larger ones (principally to banks with government participation in their capital). This last factor was strengthened by the Bank of Russia’s efforts to rehabilitate the banking sector by withdrawing the licences of a significant number of banks, including those working in the market of private deposits. Within the framework of this policy of the Bank of Russia, aimed at reducing the number of banks and terminating the activities of any banks violating prudential standards, one should note the necessity for a more integrated approach to the reform of the sector, including measures aimed at increasing capitalisation, and the formation of an institute of systemically important banks with a reduction in the proportion of banks with government participation.
    Keywords: Russian Economy, banking sector, central bank.
    JEL: E58 G21 G28
    Date: 2014
  2. By: Philipp M. Richter; Franziska Holz
    Abstract: The Russian-Ukrainian crisis has revitalized the European concerns of supply disruptions of natural gas as experienced in 2006 and 2009. However, the European supply situation, regulation and infrastructure have changed since: imports aremore diversified, EU member states better connected and a common regulation on the security of supply has been introduced. Nevertheless, several East European countries are highly dependent on Russian natural gas. This paper investigates different Russian natural gas export disruptions scenarios and analyses short- and long-term reactions to ensure a sufficient supply of natural gas within Europe. We use the Global Gas Model (GGM), a large-scale mixed complementarity representation of the natural gas sector with a high-level of technical granularity with respect to storage and transportation infrastructure. We find that most of the EU member states are not severely affected by a complete drop out of Russian exports. Removing infrastructure bottlenecks within the EU should still be prioritized in order to secure a sufficient natural gas supply for all EU member states.
    Keywords: natural gas trade, Russia, Europe, security of supply, infrastructure investment, equilibrium modelling
    JEL: Q34 Q37 Q41 C61 L95
    Date: 2014
  3. By: Svetlana Suslova (National Research University Higher School of Economics)
    Abstract: This paper explores the competitive bidding process in eight regions of Russia where local governments entered into. The bidding documents have been analyzed in terms of the type of provider ownership, public or private, levels of nonprofit activity, and nonprofit competitiveness. The findings indicate considerable discrepancies between the numbers of competitive tenders for social services in the regions in question. The types of social services that local governments procure vary significantly from region to region. It is suggested that these differences are an essential factor in nonprofit participation. The most active nonprofit involvement is found in regions where procured services are that which the nonprofits usually produce. The results reveal a substantial lack of competition in Russian social service quasi-markets. In many cases, nonprofit organizations can be competitive in terms of competitive bidding in Russia; however, this result raises questions about the quality of social services procured by local and regional authorities
    Keywords: social service delivery, nonprofit organizations, social services quasi-markets, nonprofit competitiveness
    JEL: H57 L31 L33
    Date: 2014
  4. By: Konstantin A. Kholodilin; Mark G. Meerovich
    Abstract: The World War I played a key role in shaping modern housing policy. While in the pre-War time virtually no housing policy existed, the beginning of hostilities led to an almost immediate and comprehensive state intervention in the housing market, particularly among those engaged in the war. Despite initially similar conditions and challenges induced by the war, housing policy was carried out in different countries differently. This is particularly true for Germany and Russia. Even though both went through similar processes during the inter-war era, the different objective functions pursued by their political regimes shaped their housing policies in completely different manners. This paper compares the housing policies in Germany and Russia, identifying the similarities and differences.
    Keywords: Germany, Russia, housing policy, World War, rationing, tenant eviction, rent control
    JEL: N44 N94 P25 R38
    Date: 2014
  5. By: Yuri Ponomarev (Gaidar Institute for Economic Policy); Pavel Trunin (Gaidar Institute for Economic Policy); Alexei Uluykaev (Ministry of Economic Development)
    Abstract: In The article provides estimates of short-run and medium-run exchange rate pass-through into domestic prices in Russia during the period of 2000–2012 using vector error correction model. Exchange rate pass-through asymmetry estimates, its assessments on different sub-periods and exchange rate volatility effect on pass-through are also provided.
    Keywords: exchange rate pass-through, asymmetry of exchange rate pass-through, exchange rate volatility, inflation, monetary policy, vector error correction model. exchange rate pass-through, asymmetry of exchange rate pass-through, exchange rate volatility, inflation, monetary policy, vector error correction model.
    JEL: C32 E31 E52 F31 F41
    Date: 2014
  6. By: Singh, Nirvikar
    Abstract: This is a collection of essays written for the Financial Express, an Indian financial daily. The common theme of these essays, which cover a period of almost four years, from October 2010 to May 2014, is the issue of how India is finding its place in the world, after a history of colonization and post-colonial suspicions. The essays discuss rebalancing the world economy, the G20 and India’s place in that newish grouping, foreign policy and comparisons to the US, China and Russia, cultural and financial impacts of globalization, and the role of India’s diaspora. The concluding essay considers some global positioning options, good and bad, for India’s new government. 
    Keywords: Business, Social and Behavioral Sciences, India, foreign policy, China, United States, G20, diaspora, globalization
    Date: 2014–06–01
  7. By: Polterovich, Victor; Starkov, Oleg; Ilinskiy, Dmitry
    Abstract: Contractual savings for housing (Bausparkassen) with narrow ranges of tariff plans are used to coexist with banking hypothec, providing consumers a binary choice . We propose to form systems (lines) of savings and loan tariff plans (SLTP) for bank accounts «linking» these two mortgage institutions. We consider properties of lines of SLTP and develop a model for their design and analysis. Experimental calculations indicate that parameters of the line of SLTP may be selected so that efficiency of the mortgage system rises for all involved agents – consumers, banks and governments. Finally we analyze the impact of parameters of SLTP on objective functions of the agents.
    Keywords: mortgage, line of savings and loan plans, contractual savings for housing, savings and loan bank account for housing
    JEL: D02 D14 G21
    Date: 2014–05–28
  8. By: Marvin Suesse (Humboldt-Universität zu Berlin)
    Abstract: The breakup of the Soviet Union provides evidence for the detrimental effects of secessionist conflict on domestic integration and economic growth. This paper shows that the increased likelihood of secessions by the Union’s member republics in the late 1980s strongly reduced internal Union trade. Economic disintegration thus proceeded along internal borders and preceded the Soviet Union’s official dissolution. This helps to explain the severity of the output fall in the late Soviet period. Methodologically, these results stem from an empirical gravity framework, which is derived from first principles by a game-theoretic modeling of Soviet internal trade. Exogenous variation in nationalist agendas, namely the desire to preserve national languages, is used to preclude endogeneity running from trade patterns to secession.
    Keywords: Nationalism; secession; economic disintegration; output fall; Soviet Union; transition economies
    JEL: F52 N14 P20
    Date: 2014–07

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